Fuel Cell Market Size Share, and Trends 2024 to 2034

Fuel Cell Market Size and Growth 2024 to 2034

The global fuel cell market size accounted for USD 9.34 billion in 2024 and is predicted to reach around USD 95.65 billion by 2034, growing at a noteworthy CAGR of 26.2% from 2024 to 2034.

Asia Pacific Fuel Cell Market Size and Growth 2024 to 2034

The global fuel cell market size was valued at USD 4.78 billion in 2023 and is expected to be worth around USD 62.17 billion by 2034, at a noteworthy CAGR of 27% from 2024 to 2034.

North America dominated the fuel cell market in 2023. This is due to the presence of supportive legislation in the North America region aimed at reducing carbon emissions, as well as the availability of financing for fuel cell research and development initiatives.

Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. The expansion of the fuel cell market in the Asia-Pacific region has been propelled by policies and strategies that encourage fuel cell systems for transportation applications in India, China, Japan, and South Korea.

Fuel Cell Market Growth Factors

A fuel cell generates electricity using the chemical energy of hydrogen or other fuels in a clean and efficient manner. Water, electricity, and heat are the only results when hydrogen is used as a fuel. Fuel cells have a wide range of applications, including industrial, residential, transportation, commercial structures.

Fuel cells have a number of advantages over traditional combustion-based technologies, which are being employed in a number of power plants and automobiles. When compared to combustion engines, fuel cells emit fewer or no emissions. As hydrogen fuel cells emit only water and no carbon dioxide, they can help to address crucial climate issues.

The major market players are taking enormous steps to increase their market position throughout developing countries, including increasing research and development investments and constant mergers and acquisitions. The product deployment is being aided by ongoing technology advancements and a decrease in the overall cost of fuel cell installations. The rising government investments in the construction of hydrogen-based infrastructure, together with the rising demand for fuel cells electric vehicles, are expected to propel the growth of the fuel cell market.

Furthermore, rising demand for portable devices, strict government restrictions aimed at reducing rising pollution levels, and improved fuel cell efficiency are some of the fuel cell market’s major driving factors. The influence of these factors is projected to grow dramatically as the benefits of fuel cell become more widely known. The high cost of the catalyst, which boosts the cost of the fuel cell, and the absence of fuel cell infrastructure are factors hindering the growth of the global fuel cell market during the forecast period.

The implementation of favorable regulations and incentives to encourage the use of renewable energy, as well as increased financing for electrification of distant and off-grid areas, is expected to boost the system installation. The adoption of various investment projects aimed at putting a greater emphasis on distributed power generating techniques and expanding fuel cell setup would boost the growth of the fuel cell market. However, product implementation has several key limitations, including insufficient infrastructure, hydration, and excessive fuel cell costs, and storage.

The growing consumer awareness of clean energy solutions, as well as an increase in the use of favorable governmental subsidies to promote fuel cell electric vehicles, will boost the product demand in the transportation sector. The recent technological advancements, such as the incorporation of high efficiency portable technology, are more likely to create lucrative opportunities for the growth of the fuel cell market during the forecast period.

Fuel Cell Market Scope

Product Insights

The proton exchange membrane fuel cell segment dominated the fuel cell market in 2023. The substantial market share of proton exchange membrane fuel cell is attributed to its widespread use is fixed, transit, and portable applications.

The solid oxide fuel cell segment is fastest growing segment of the fuel cell market in 2023. The ability of solid oxide fuel cell to work at high temperatures eliminates the need for expensive catalysts like ruthenium. Solid oxide fuel cells are most commonly used in stationary applications.

Application Insights

In 2023, the stationary segment dominated the fuel cell market. During the forecast period, the stationary segment is expected to become the most popular application. The stationary application segment is predicted to develop because of the factors such as high efficiency and the ability to use a variety of fuels.

The transportation segment, on the other hand, is predicted to develop at the quickest rate in the future years. Due to the growing demand for fuel cell automobiles and fuel cell powered forklifts, the transportation application segment is predicted to increase at the quickest rate over the forecast period. Moreover, the industry is expected to grow due to increased research and development activities in the developed and developing countries to produce hydrogen powered hybrid vehicles.

Fuel Cell Market Companies

• AFC Energy PLC
• SFC Energy
• ITM Power PLC
• Hydrogenics
• Fuji Electric India Pvt. Ltd
• Proton Power Systems PLC
• Plug Power Inc.
• Ballard Power Systems Inc.
• United Technologies
• Fuel Cell Energy Inc.

Key Developments

• Hydrogenics opened a new facility in California, in October 2018. The facility’s primary goal would be the integrate hydrogen fuel cell systems onto heavy duty truck and bus platforms for California customers. Hydrogenics was able to improve its position in the U.S. market due to the establishment of this manufacturing plant.
• Plug Power introduced a new plant in March 2019 to expand its hydrogen-based fuel cell line. The ProGen 30kW engine is a cost-effective solution for electric vehicle, with high utilization and reliable performance in severe settings, as well as quick fueling and zero emissions.
• SFC Energy entered into a contract with AuroraHut, a Finnish Company, in October 2019. AuroraHut will include the EFOY fuel cells into its new all season igloo houseboats for highly customized trips under the terms of the deal. In all igloos, the fuel cell provides a fully automated and ecologically beneficial power source.
• MHI announced in October 2020 that it has received a contract to supply solid oxide fuel cell system, making the company’s first in Europe. As part of the KWK.NRW 4.0 project, the hybrid solid oxide fuel cell system will be integrated at the GWI in Germany.
• Navistar Inc., General Motors, and OneH2 established an agreement in January 2021 to provide complete solutions for long haul transportation systems with low emissions. The group’s combined efforts are expected to strengthen the hydrogen-powered truck ecosystem. 

The major market players are highly investing in research and development to improve the technical features of fuel cells and modules, which offer cheaper battery costs, longer life, and greater performance. Several strategic initiatives have been attempted by industry players, including supplying varied product ranges, joint ventures, mergers, acquisitions, and collaborations. These tactics help firms and market players to gain a stronger presence in the global fuel cell market.

Segments Covered in the Report

By Product

• Proton Exchange Membrane Fuel Cell
• Phosphoric Acid Fuel Cell
• Solid Oxide Fuel Cell
• Molten Carbonate Fuel Cell
• Others

By Application

• Stationary
• Transportation
• Portable

By Geography

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • Germany
  • France
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa (MEA)
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa